Although most chains in the south of England pay above the minimum wage, others in the Midlands and further north have already been affected by the rise for workers aged over 22, which comes into force from 1 October. The rate for workers aged 18 to 21 will also increase, from 3.80 to 4.10 an hour.
Glennis Robinson, a partner at the Early Years Childcare Group in Leicestershire, said fees had risen by 10 to 145 a week, instead of its usual 5 increase. 'We have just had to put up the fees more than we normally would to cover it. Every member of staff is affected, because we increase them all pro rata to maintain pay differentials,' she said.
Paul Edwards, managing director of Earlyworld Nurseries in Shropshire, said he supported the principle of the minimum wage, but noted that it had 'started to rise dramatically recently', so fees would have to increase by 7 per cent to cover the cost.
The extent to which the increase affects a nursery appears to depend mainly on its geographical location and size.
Martin Pace, a director at Dolphin Nurseries, said that as its branches were sited in and around London, staff salaries would be 'minimally affected'.
'But I guess where margins are tighter, where salaries and fees are lower, it will have a significant effect,' he said.
Deborah Rowe, regional childcare manager at Childcare Enterprise, based in Tyneside, said that 'by and large' the chain, which owns nurseries across the country, paid its employees above the minimum wage.
Deborah Simpson, senior professional officer for pay and conditions at the Professional Association of Teachers, said, 'Any increase in the minimum wage is welcome, but providers should be paying above this level.'
Rosemary Murphy, chief executive of the National Day Nurseries Association, which supports the principle of the minimum wage, warned that its impact on providers' viability was getting stronger.